The digital asset exchange Huobi Global has revealed its intention to withdraw from the Chinese market. The cryptocurrency trading platform with Chinese descent said that it will stop processing transactions for existing users on the mainland before the end of the year.

Huobi Global ceases to provide services within the territory of the People’s Republic of China

Huobi Global, a cryptocurrency exchange, will stop providing services to users in mainland China this month. In a statement quoted by the English-Chinese TV channel CGTN, the company announced on Sunday that starting at 11:00 a.m. Beijing time on December 14th, users in the People’s Republic of China will be banned from purchasing cryptocurrencies.

Huobi Global It further elaborates that it will stop the cryptocurrency trading business on the second day of December 15 and terminate all crypto asset trading before 12:00 pm on December 31. However, traders can still log in to their accounts and apply for withdrawals. The platform emphasizes the amount of remaining assets in the next one to two years. The platform has not accepted new customers from China since September.

The report pointed out that several cryptocurrency exchanges are preparing to exit the Chinese market before the end of 2021. Their move came after Beijing decided to reiterate restrictions on cryptocurrency trading this year, and subsequently cracked down on trading and mining. In addition to Huobi Global, the list also includes other major platforms such as Binance and Kubi.

The state-run CGTN commented that in the so-called global cryptocurrency crackdown, China has been stepping up efforts to restrict the cryptocurrency market. The news agency added: “People are increasingly worried that highly volatile digital currencies may undermine the stability of the financial and monetary system, increase systemic risks, encourage financial crimes and harm investors.”

The People’s Republic of China banned crypto-related activities as early as 2017. Although the government pursues coin transactions and token sales, the authorities did not intervene in mining until this spring. In May, the State Council and the Cabinet of Ministers in Beijing decided Clamp After President Xi Jinping promised that the country will achieve carbon neutrality in the next 40 years, regarding the encryption industry.

Leading mining hardware manufacturer Bitmain provides another example of a large encryption company exiting the Chinese market. In October, the Beijing-based manufacturer Announce It will no longer ship its products to the mainland, explaining that the move is in response to local regulations. Like other businesses, Bitmain emphasized that the decision does not involve its businesses in the Hong Kong Special Administrative Region and neighboring Taiwan.

Do you expect more crypto companies to exit the Chinese mainland market? Tell us in the comments section below.

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